OFFICIAL LIQUIDATOR Vs. GULAB CHAND KHAN CHAND

JUDGEMENT

(1.) THIS application has been filed by the Official Liquidator under Sections 446 and 477 of the Companies Act, 1956 which relates to M/s Ganpathy Savings and Finance Co. (P) Limited in liquidation (here in after referred to as 'the Company in liquidation').

(2.) THE Company in liquidation carried on business of financing and in connection of the said business, it used to advance loans. In the application it has been stated that the Company in liquidation advanced a sum of Rs. 13,000/ - to respondent No. 1 on various dates and the interest payable on the said loan was 18% per annum. Out of the said sum of Rs. 13,000/ - respondent No. 2 had stood surety to the extent of Rs. 9,000/ - in respect of three loans of Rs. 3,000/ - each. Details of the loans advanced by the company in liquidation to the respondent are as under:

(3.) NOTICES were issued of this application to the respondents. Respondent No. 2 even though duly served, did not appear. Respondent No. 1 has, however, filed a reply. In the said reply it has been admitted that the total amount of Rs. 13,000/ - on various dates was received by respondent No. I. It has, however, been asserted that against the aforesaid amount of Rs. 13,000/ - respondent No. 1 has deposited a sum of Rs. 8,890/ - details of which are set out in Schedule attached to the reply and it has been submitted that respondent No. 1 is entitled to set off the amount so deposited. An objection has also been raised in the said reply that the claim made by the Official Liquidator is barred by Limitation. A rejoinder has been filed by the Official Liquidator wherein it has been stated that respondent No. 1 has not paid anything against the loan and that respondent No. 1 is not entitled to claim any set off against the said loan. It has also been stated that the claim is not barred by limitation and in that connection reliance has been placed on the letter dated January 20, 1981 addressed by Shri Tarachand Shivnandi Advocate to Official Liquidator which is annexed as Annexure Rule 1 to the rejoinder.